TL;DR Silver skin is recycled/re-purposed coffee skin also called coffee chaff.
Before coffee beans are roasted they contain about 11% internal
moisture, if you look at a green (unroasted) coffee bean next to a
roasted one you will notice the green bean is much smaller and has a
thin skin, called silverskin or chaff.
The heat of the roasting process converts the internal moisture into
steam causing the skin to heat up and the bean to expand. When
roasting is completed the chaff falls off and is removed from the
roaster. Like coffee, chaff contains a high nitrogen content which
makes it a valuable product for environmental purposes, and each roast
produces about 3.2 pounds of chaff. As part of our commitment to
consciously great coffee we have found a way to recycle the chaff from
every roast instead of tossing it into the dumpster. Since 2008 we
have partnered with a company called Reconserve that converts bulk
food waste materials into animal feed and who’s guiding philosophy is:
recycle, reprocess, resource conservation. Reconserve picks the chaff
up from our roasting facility in Sacramento, blends it with other
bakery byproducts, and produces a feed supplement for dairy cows. We
currently produce about 4,000 pounds of chaff each month, this means
since 2008 we have recycled about 320,000 pounds of chaff into feed
for cattle. We take our commitment to sustainability seriously and
make sure that we are constantly evaluating every step of our process
to see where we can make improvements. When you purchase ecoGrounds
coffees we want you to know you are choosing a high quality coffee
that has a positive impact on the environment and global community.
Source: http://www.ecogrounds.com/story/coffee-chaff
Additional information on the patent below: http://www.google.com/patents/US7927460